Genesco Crushes Earnings Estimates
Genesco (NYS: GCO) reported earnings on May 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 28 (Q1), Genesco beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.
Margins increased across the board.
Genesco booked revenue of $600.1 million. The nine analysts polled by S&P Capital IQ expected net sales of $577.2 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $481.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.98. The nine earnings estimates compiled by S&P Capital IQ forecast $0.74 per share. GAAP EPS of $0.85 for Q1 were 35% higher than the prior-year quarter's $0.63 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.5%, 10 basis points better than the prior-year quarter. Operating margin was 6.0%, 40 basis points better than the prior-year quarter. Net margin was 3.4%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $531.7 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $2.62 billion. The average EPS estimate is $4.72.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 115 members out of 131 rating the stock outperform, and 16 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Genesco a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Genesco is outperform, with an average price target of $82.50.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.